Trust launches led by demand for alternatives

He pointed out: “It's also worth noting that there is no stamp duty to be paid on an IPO but also that some may not raise enough money and therefore will not launch at all.”

Laith Khalaf, senior analyst at Hargreaves Lansdown, explained: “Where they get investment trust exposure, IFAs will normally do so through a managed service and so won’t have to keep up with the regular flow of equity issuance.”

So far in 2018, 14 investment trusts have announced changes to management fees.

“Over a third of investment companies have reduced fees since 2012 which demonstrates the value of independent boards of directors to shareholders,” said Ms Brodie-Smith.

Most recently, the BlackRock Smaller Companies investment trust dropped its management fee and abolished its performance fee, which had previously been based on 10 per cent of the annualised outperformance in the two previous financial years, applied to the average gross assets, capped at 0.25 per cent of average gross assets.

Jason Hollands, managing director, business development and communications at Tilney Group, observed: "Over several years now, boards have become more inclined to flex their muscles in fee discussions with managers and, in some cases, this has included reigning back on performance fee structures.

"However, the news that Invesco [Perpetual] has served termination notice on its contract to manage the relatively small Invesco Enhanced Income mandate – essentially firing the client – over a difference of views on fees, is a reminder that fund managers too have lines in the sand over what makes commercial sense for them."